FSA, Part 3Ratio
Analysis
Goal: Red Flags of Fraud
A single fraud can affect many ratios
Your company may have frauds beyond what
the SEC prosecuted (where to begin looking?)
FSA Goal: Would careful analysis have
led to further investigation?
Sub-goal: Wh

Valuation: Part II
Valuing a business, private and public
Tonight
Valuing privately held companies
Valuing public companies
Using different models to value your fraud firm,
Once using the fraudulent financial statements
Once using the restated numbers.
V

Fraud investigation
HOW TO CONDUCT A FRAUD INVESTIGATION
Review: Fraud Elements
Pressure
Opportunity
Confidence
in their ability to pull off a crime
Rationalization
Fraud Not Error
Intent: deliberate action that they know, or
should know is wrong.
Be

NOTICE
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appropriate portion

STAR VALLEY CONFECTIONERS: CONNECTING THE DOTS IN A FRAUD
INVESTIGATION
October 2016
STAR VALLEY CONFECTIONS: CONNECTING THE DOTS IN A FRAUD
INVESTIGATION
Abstract
Star Valley Confections (SVC) is considering an initial public offering (IPO). To go public